Abstract:
Platform capitalism describes the reorganization of economic activity and relations around a new type of firm – the digital platform firm. Platforms are digital infrastructures that intermediate between users in multi-sided markets. Platforms typically benefit consumers, are backed by patient venture capital and pursue market dominance at the expense of workers and dependent businesses. Two characteristics are central to platform capitalism: First, platform firms centralize core inputs to the digital economy. Platform firms combine the ownership of digital infrastructure with the ownership of big data and digital technologies (such as AI). Second, platforms reorganize economic activity by creating platform ecosystems. Inter-firm relations in platform capitalism are increasingly characterized by co-production and co-optation between platform-dependent businesses and platform firms. Business-government relations in platform capitalism are (re)structured in two ways: First, platforms centralize vast instrumental, structural, and infrastructural power resources and take on important governance functions themselves. Second, governments remain important market makers and regulators.
Kemmerling, M. (2026). "38: Platform capitalism". In Elgar Encyclopedia of Business and Government. Cheltenham, UK: Edward Elgar Publishing. 218–223. https://doi.org/10.4337/9781035307784.00043